FLAG collects $217m for Fund V

The firm’s fifth North American-focused fund of funds had collected about $144m as of April.

FLAG Capital management has collected about $217 million for its fifth fund of funds, according to documents filed with the US Securities and Exchange Commission Wednesday. 

The documents list a target amount of $220 million for Fund V, though previous filings included a total offering amount of $200 million. FLAG increased the fund to $220 million to accommodate additional investors, according to a source familiar with the matter.

FLAG launched the fund in 2012 and had collected about $144 million, including an undisclosed general partner commitment, as of April.

Fund V will invest in North American mid-market and lower mid-market private equity funds less than $1 billion in size. The firm prefers country and region-focused fund managers, according to its website.

FLAG’s prior fund of funds closed on $138 million in 2010. Limited partners in the fund include the Indianapolis-based Richard M Fairbanks Foundation and Baltimore-based Jacob and Hilda Blaustein Foundation, according to PEI’s Research and Analytics division. 

Founded in 1994, Connecticut-based FLAG also raises venture capital fund of funds—the latest launched in 2011 with a $275 million target—and international fund of funds. FLAG International Partners III launched in 2012 and is targeting $150 million, according to PEI data.

FLAG declined to comment on fundraising.

At the end of last year, FLAG acquired Hong Kong-based peer Squadron Capital, which manages Asian private equity funds for institutional investors, family offices and high net worth individuals. The deal, which was the first time FLAG had ever acquired another fund of funds, added about $1.5 billion of assets to the firm. 

Two FLAG Squadron partners recently announced their resignation. Jacob Chiu left in July and David Pierce will leave in 2014, managing director Wen Ten previously told PEI. He added the departures represented “a natural transition”. 

FLAG operates out of Stamford, Connecticut, Boston and Hong Kong.